Plunder of PNCC Gratuity Fund (9)

ON June 1, 2011,  Chair Butalid formally required the members of  This Board to give their writ-ten reaction to COA’s already indicated AOM, and to explain why they should not be required to refund/restitute to Philippine National Construction Corp. the amounts individually cashed advanced to them from its gratuity trust fund.

In the interest of FAIRNESS, and considering that this ANOMALY (which literally dwarfs those involving other government agencies/GOCCs, like the PAGCOR and PCSO) could be Ombudsman-bound after this  series thereon, Rapidfire feels obliged to  put in print the conso-lidated formal reply of the members of This Board to Chairman.

Butalid’s letter, thus :

  1. xxx the payment of cash gratuity to all PNCC corporate and managerial executives, along with the rank-and-file employees, is legally authorized. Section 5.13 of the PNCC By-Laws in relation to Section 36 (10) of the Corporation Code provides that the PNCC Board has the power, among others,  to establish pension, retirement bonus or other types of incentives or compensation plans for the benefit of the corporation’s employees, officers, directors, and trustees.
  2. It is a fact that PNCC has been in a retrenchment mode after the operations and maintenance  of the relevant  expressways had been ceded to various private operators under the different Joint Ventures, with PNCC remaining as equity partner with share in the revenues. The grant of cash gratuity, as in any other retrenching entity, was in line with PNCC’s Retrenchment/Retirement Guidelines applied to all officers and employees in recognition of their contribution to PNCC’s welfare and viability.
  3. xxx The corporate power of all corporations shall be exercised, all business conducted  and all property of such corporations controlled and held by the board of directors. Thus, questions of policy or of management are left solely to the honest decision of the board as the business manager of the corporation.
  4. Its acts or contracts are presumed to be valid and regular and as long as it acts in good faith and in the exercise of honest judgment in the interest of the corporation, its actions are not renewable by the courts.
  5. xxx The rules and regulations or standards applied in the audit  of  regular agencies and corporations do not and should not apply to PNCC. (To be continued)

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